What Will Apple Do With Its Huge Cash Inflow?
Pre-orders for the iPhone 5 topped 2 million in just 24 hours, a staggering number that far exceeded expectations. Luckily for Apple, in addition to making great products, the company has also mastered logistics and supply-chain management.
With the iPhone 5 already a runaway hit, Apple's profits are set to be gargantuan. Which raises the question: What is the world's biggest company going to do with so much money? With tens of billions in cash on its balance sheet, Apple could seek out its next big acquisition, or even increase its dividend.
Investors shouldn't hold their breath, though. At this point, Apple is likely to keep its earnings close and hold off on immediate acquisitions or dividend increases. Both are likely to come in time, but expect Apple's main focus to be channeling that money back into the brand and into new innnovations for the future.
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The article What Will Apple Do With Its Huge Cash Inflow? originally appeared on Fool.com.Chris Hill, Jason Moser, and Joe Magyer have no positions in the stocks mentioned above. The Motley Fool owns shares of Apple. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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